Karnataka: Buoyed by beer, Excise revenue grows 14.84% following reforms

Buoyed by a whopping growth in sales of beer after prices of some of the low alcohol-content beer came down — following Excise reforms introduced by the State government last month — revenue has grown by 14.84% in the one-month window. The performance of beer sales in May-June this year contrasts the performance in 2025-26, when sales had declined by 11.3% compared to 2024-25.

While the sale of beer between May 11 (when the new prices came into force) and June 11 grew by 54.67%, in contrast, the sale of Indian Made Liquor (IML) in the same period came down marginally by 0.35%, compared to the corresponding period in 2025.

Cases sold

In terms of volume, 54.6 lakh cases of beer were sold from May 11-June 11, 2026, against 35.3 lakh cases sold in the same window last year. However, the sale of IML has come down to 54.55 lakh cases in 2026 from 54.74 lakh cases in 2025 in the same period.

The sale of beer increased the total Excise collection in the period to ₹3,745.14 crore from ₹3,261.24 crore in the corresponding period last year.

Weather factor

“The huge rise in beer sales was due to the combined factor of drop in beer prices and the heat conditions that prevailed in the State during that period. We are expecting the sales of beer to reduce in the coming months if cold conditions prevail due to monsoon rains. A clear picture will emerge in the next few months,” Excise sources said, adding that the cold conditions had set in early in May last year owing to early rains. “This had resulted in beer sales coming down. Later, floods added to the drop in beer sales,” the sources added.

In fact, the total sales of beer had slumped to 399.29 lakh cases in 2025-26, a 11.3% decline from 450.36 lakh cases sold in 2024-25.

The prices of low alcohol-content beer and IML have come down after the State government introduced Excise reforms, bringing pricing connected to “alcohol in beverage” instead of taxing on slabs. The high volume-high alcohol content liquor in the State that falls within the first four slabs of Excise is consumed by the masses and drives Excise collection.

Sources said that a new trend is being observed in the State following the price revision. “This is only an early trend, which could see changes in the coming months.”